Oxford Company has limited funds available for investment and must ration the funds among four...

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Accounting

Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected information on the four projects follows: Project Investment Required Present value of Cash Inflows Life of the Project (years) Internal Rate of Return A $ 200,000 $ 234,323 7 22% B $ 118,000 $ 207,000 12 19% C $ 103,000 $ 165,035 7 20% D $ 162,000 $ 243,136 3 17% The net present values should be computed using a 10% discount rate. The company wants your assistance in determining which project to accept first, second, and so forth. Required: 1. Compute the profitability index for each project

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